Important Upcoming Changes in State Law – Corporate Officer Exemption
November 5, 2014
COLUMBIA, SC – Effective January 1, 2015, state law (S.C. Code Ann. § 41-27-265) exempts corporate officers from state unemployment insurance (UI) coverage. However, a corporation may elect coverage of its corporate officers. The law only applies to officers of a corporation, and does not apply to other business entities such as limited liability companies (LLCs), sole proprietors or partnerships.
If corporate officers are covered by UI, the employer must report the individuals each quarter as employees and pay state unemployment taxes on their wages. Corporate officers that are covered by UI may be eligible for unemployment benefits if they lose their jobs and meet eligibility requirements.
Visit dew.sc.gov/corpofficers for more information.
